New Build - Mortgage Valuation lower than purchase price!! PLEASE HELP

Kez100

I do laugh when I see where developers place balconies. Link one above - looking right out onto a road junction.

All I can see are posh words, shiny taps, windows with far too many panes to clean and photographs of things you won't be owning anyway (like toothbrush holders).

No, I'll stick with No 3 Rickett Road with my cluttered lounge, Trago toothbrush holder and one paned, big flat window through which I can enjoy my sea view.

SurreyChick_2

actually the Berkeley homes place that SouthCoast kindly provided the link for was in the property section of my local paper today (Surrey Advertiser) - you just can't tell from looking at the ad (or the online version) that it's been for sale for over a year...

The property I paid the deposit on is still under construction. And, just to clarify, the £307,400 agreed price included the incentives of 5% deposit and 3% SDLT, plus extras like wood floors and a kitchen upgrade. Since it has been valued at £290K, I will ask the developer to do the same deal at the valuation price of £290K...I can already imagine the answer will be "NO WAY", but at least I can ask...it's such a shame bec. I really fell for this flat...but at the same time I won't pay more than what it's worth...

Thanks for your advice & opinions

SouthCoast

you just can't tell from looking at the ad (or the online version) that it's been for sale for over a year...

Thanks for thanks!

What the ad does not tell you is that the Housing Association were unable to sell their shared ownership part of the development as nobody could afford to buy them. They are currently let out to LA tenants.

geoffky

IF you are buying a flat read this first and the tell me it wont happen again

http://www.thisismoney.co.uk/mortgages/article.html?in_article_id=442799&in_page_id=8

bluejake

wrightstar wrote: »

The same happened to me last week. Our agreed purchase orice was £190k then the survey came back at £180.
the builders had already offered a 5% deposit. So i was vewry nervous about re-negotiating on the price.
Anyway, I had some great advice from Kez100. doozer and many others on this site and went for it.
I managed to get it down to the survey price with the same incentive of 5% deposit.
Be brave and offer them less than the price, doint call them once youve made your new offer, let them call you!
Its hard to do but it works
Good luck xx

I wouldn't be feeling pleased with myself if I had negotiated that. How much will it be worth in 12 or 18 months. Insanity to buy now.

Sisyphus

clairey22 wrote: »

Hi all,

Okay, the latest is that my boyfriend was trying to speak to the head office all day and the manager is on site today so was not able to call him back apparently. He is going to call us back on Monday.

Claire

Why are you in such a hurry? They're not going anywhere. Let them sweat.

SurreyChick_2

Hmm...it looks like we are Gazunderers! (check out article below)

I've called the developer and emailed them, and they have not contacted me to deal with the issue of the low valuation. I have offered £290K (to include the agreed incentives) but they are keeping a low profile. In the meantime I am viewing some rented flats today (I already gave notice on my current rented flat and have to move)...


Housebuilders hit by gazundering
Dan Atkinson, Financial Mail
15 June 2008, 11:27am

http://www.thisismoney.co.uk/investing-and-markets/article.html?in_article_id=443015&in_page_id=3

Housebuilders, already reeling from the fallout from the credit crunch and tumbling house prices, face a new menace - 'gazundering' by buyers after they have exchanged contracts.
More people buying newly built homes are threatening to walk away at the last minute - even though it will mean the loss of their deposit - unless the seller drops the price.
This gives a new twist to the practice of gazundering, under which buyers demand price cuts just before contracts are exchanged.
As Financial Mail reported last week, traditional gazundering has made a comeback in recent months as the fall in property values has gathered pace.
Usually it would make no sense to wait until after exchange because of the fear of losing the deposit and being taken to court for breach of contract.
But it is understood that developers, keen not to be lumbered with homes that are likely to prove increasingly difficult to sell, are quietly doing deals with the new breed of gazunderers.
A source at a big housebuilder told Financial Mail: 'There are discounts of up to eight per cent available for those who can complete quickly.'

clairey22

Sisyphus wrote: »

Why are you in such a hurry? They're not going anywhere. Let them sweat.

I know, you are right, i'm just impatient! we are still waiting for them to get back to us so we can give them a lower offer. The mamager is still "on site" and not returning calls.

Claire

poppysarah

Not returning calls is plain rude.

They know the place has been undervalued and will not want to offer a deal.

Let them sweat.
You'll get it for 250 in 6 months.

SurreyChick_2

Yeah the manager I've been trying to get a hold of is "onsite" as well...I think it's more like she's buried her head in the sand...

Well, there's a gorgeous flat closeby to where I was going to buy...it is for rent and will cost the same as the mortgage payment would have cost, and it's less risk, there is less money to pay upfront, and I can sit and watch prices take a nosedive and maybe pick up a bargain when it hits rockbottom...fingers crossed anyway...

Clairey22 - can you let me know what happens? I'll keep you posted on my situation as well.